Thursday, January 13, 2011

Contribution by Peter F. Drucker – MBO

Contribution by Peter F. Drucker – MBO: Drucker is highly respected mgmt thinker. He is a prolific writer & has published several books & articles on the mgmt practices. His views on mgmt may be summarised as follows:1.Nature of mgmt: peter Drucker is against bureaucratic mgmt & has emphasised mgmt with creative & innovative characteristics. The basic objective of mgmt is to lead towards innovation. The concept of innovation is quite broad. It may include development of new ideas, combining of old & new ideas, adaptation of ideas from other fields or even to act as a catalyst & encouraging other to carry out innovation. He has treated mgmt as a discipline as well as a profession.2.Mgmt functions: Peter Drucker opined that the, mgmt is the organ of its institution. It has no functions in itself, & no existence in itself. He sees mgmt through its tasks. Accordingly, there are three basic functions of a manager which he must perform to enable the institution to make its contributions for a) the specific purpose & mission of the institution, whether business, hospital or university.3.Organization Structure: Peter Drucker has described bureaucratic structure because of its to many dysfunctional effect. Hence, it should be replaced. He has emphasised three basic features of an effective organisation structure. These are a) enterprise should be organized for performance b) it should contain the least possible number of managerial level and c) it must make possible the training & testing of tomorrow’s top mangers – giving responsibility to a manager while still he is young. 4. Federalism: the concept of federalism has been advocate by Peter Drucker. Federalism refers to centralised control in decentralised structure. De centralised structure goes far beyond the delegation of authority. It creates a new constitution, & new ordering principle.5.Mgmt by Objective: P.Drucker most important contributions to the discipline of mgmt is mgmt by objective (MBO). He introduce this concept in a 1952. MBO has further between modified by schleh which has been termed as ‘mgmt by results’. MBO includes method of planning setting standards performance appraisals, & motivation. According to Drucker, MBO is not only a technique of mgmt but it is philosophy of managing.6.Organisational Changes: P Drucker has visualizes rapid changes in the society because of rapid technological development. Though he is not resident to change, he feels concerned for the rapid changes & their impact on human life. Normally, some changes can be absorbed by the organisation but not the rapid changes. Since rapid changes are occurring in the society, human beings should develop philosophy to face the changes & take them as challenges of making the society better.